asked the Minister for Agriculture and Fisheries whether his Department have taken any special steps to put the pigs and bacon industry on a sound footing; and if he will make a statement on the outlook and prospects for this industry.
Ceisteanna—Questions. Oral Answers. - Pigs and Bacon Industry.
14.
The announcement of the farrowed sow scheme in May, 1966 and the increased pig housing grants in that year were designed to counteract the cyclical downturn in pig production which set in in early 1966. Minimum guaranteed prices for good quality pigs were increased by 6/- per cwt from 1st May, 1967.
Deliveries to bacon factories have improved somewhat in recent weeks and it is expected that this improvement will continue on into the coming months.
I should like to ask the Minister whether or not the examination which his Department was undertaking into the idea of encouraging co-operation between fattening stations has been completed and whether he has any more definite views on the idea than he had some months ago?
No; I have not information that could be useful to the House at the moment. As the Deputy is aware, a limited examination was first carried out. Arising from information elicited by that limited examination, a more widespread examination was then undertaken. I have not yet got to the point of having this study as a result of which I might be able to give information but I would hope to be at that stage in the not too distant future.
In order to clear up a certain amount of confusion and speculation, could the Minister say from the evidence, or any other information available to him regarding the future of the bacon industry, if there is any danger of any further bacon factories having to close down in the immediate future?
Is this in relation to the pig fattening centre unit study? Is it from that the Deputy wants me to deduce whether pig factories would close down? I do not understand the connection.
Anent this question and the previous one regarding the user of skim milk, is the Minister aware that the increase in the price of barley by 15/- per ton in Monaghan and Cavan areas has operated very largely to negative the 6/- increase in the basic guaranteed price of pigs? Will the Minister consider if anything can be done to reduce this increase back to the price which obtained previously if we are to get an increase in pig production in Monaghan and Cavan?
The argument of the increase being partly or entirely absorbed by the increase in feed costs is merely taking the view that this is the only increase that has occurred. This is the increase in the guaranteed minimum price but the actual increase which has taken place in the price of pork is overall far in excess of that. I may say that the highest price now or at any time here or in any part of Europe is being offered to pig producers.
Does the Minister not realise that the increase of 15/- per ton in the price of barley and its concomitant feedingstuffs has operated greatly to discourage farmers in Cavan and Monaghan from re-entering pig production?
While the guaranteed minimum price for Grade A special is 266/- the actual prices obtaining and being received, range between 275/-and 290/- in recent weeks. This may or may not be an argument but it certainly does not get away from the fact that the 6/- increase is far from the amount the producers are receiving.
Surely the Minister is aware that this arises from the obligation of the factories to support the Minister in his efforts to fulfil the quota laid down under the Anglo-Irish Trade Agreement and which has operated to exclude us altogether from the fresh pork market which was a valuable asset to pig production? The present artifically high prices are operated because the factories are trying to keep up the quota for which the Minister asked them in order to participate in future quotas.
This argument may be used in isolation, but the range of prices which goes down to Grade L, from 265/- to 285/-, is being paid in these recent weeks. It does not support the argument that this is an effort on the part of the factories to fulfil their quota of Grade A special exports, because this is not for export. While the guaranteed minimum price for this grade is 229/-, what they are paying is 265/- to 285/-.
Mr. Coughlan rose.
I have already allowed eight supplementaries on this question and I now call Question 15 in the name of Deputy Esmonde and Deputy O'Donnell.
Only for the sheep and beef industry in which the factories are now engaged, many more of them would be closed down. If you look at today's paper, you will see what the position is.
I have read it.
The pigs have gone.
In the other context, what was put by the unions might support my argument but it could be against it too.